Core Viewpoint - Antero Midstream Corporation reported its fourth quarter 2025 results, highlighting growth in adjusted EBITDA and free cash flow, alongside guidance for 2026 that anticipates further increases in net income and adjusted free cash flow [1][2]. Financial Performance - Fourth quarter 2025 adjusted EBITDA was $285 million, a 4% increase year-over-year [1][2]. - Adjusted net income for the fourth quarter was $133 million, or $0.28 per diluted share, representing an 8% increase per share compared to the prior year [1][2]. - Net income for the fourth quarter was $52 million, or $0.11 per diluted share, a 52% decrease per share compared to the prior year [1][2]. - Capital expenditures in Q4 2025 were $45 million, with adjusted free cash flow after dividends at $86 million [1][2]. 2026 Guidance - The company forecasts adjusted free cash flow after dividends of $330 to $390 million for 2026, an 11% increase at the midpoint compared to 2025 [1][2]. - Expected adjusted EBITDA for 2026 is projected to be between $1.19 billion and $1.24 billion, an 8% increase at the midpoint compared to 2025 [1][2]. - Net income guidance for 2026 is set at $485 to $535 million, a 23% increase at the midpoint compared to 2025 [1][2]. Operational Updates - In Q4 2025, Antero Midstream connected 18 wells to its gathering system and serviced 19 wells with its fresh water delivery system [1][2]. - The company invested $21 million in gathering and compression and $24 million in water infrastructure during the fourth quarter [1][2]. - Fresh water delivery volumes averaged 93 MBbl/d in Q4 2025, an 18% decrease compared to Q4 2024 [2]. Share Repurchase Program - Antero Midstream repurchased 2.7 million shares for $48 million in Q4 2025, with approximately $336 million remaining under its share repurchase program as of December 31, 2025 [1][2]. - A total of 9.4 million shares were purchased under the share repurchase program in 2025 at a weighted average price of $17.28 per share [1][2]. Strategic Focus - The 2026 capital budget is focused on high return infrastructure projects in the Marcellus Shale, including the buildout of a rich gas gathering system and integration of recently acquired assets [1][2]. - The company aims to maintain a strong balance sheet with leverage near 3 times and a balanced approach to debt reduction and opportunistic share repurchases [1][2].

Core Insights - Antero Midstream Corporation reported strong operational performance in Q3 2025, with a 5% year-over-year growth in gathering and compression volumes and a 30% increase in fresh water delivery volumes [3][6][10] - The company achieved significant Free Cash Flow growth, nearly doubling from the previous year, allowing for debt reduction and share repurchases [3][4][6] - Antero Midstream's credit rating improved, enabling refinancing of near-term debt maturities out to 2033 at favorable rates [3][6] Financial Performance - Net Income for Q3 2025 was $116 million, or $0.24 per diluted share, reflecting a 14% increase per share compared to the prior year [6][14] - Adjusted Net Income was $130 million, or $0.27 per diluted share, a 17% increase per share year-over-year [6][15] - Adjusted EBITDA reached $281 million, a 10% increase from the previous year [6][16] - Free Cash Flow after dividends was $78 million, a 94% increase compared to the prior year [6][16] Operational Highlights - The company connected 16 wells to its gathering system and serviced 17 wells with its fresh water delivery system during Q3 2025 [5] - Capital expenditures totaled $51 million, a 9% decrease from the prior year, with investments focused on gathering, compression, and water infrastructure [5][16] - Low pressure gathering volumes averaged 3,432 MMcf/d, a 5% increase year-over-year, while compression volumes averaged 3,421 MMcf/d, also a 5% increase [10][11] Share Repurchase and Debt Management - Antero Midstream repurchased 2.3 million shares for $41 million during Q3 2025, with approximately $385 million remaining under its $500 million share repurchase program [4][6] - The company reduced its total debt to $3.03 billion as of September 30, 2025, down from $3.19 billion the previous year [26][29] Strategic Initiatives - The company is focusing on additional well connections and fresh water delivery for its 2026 development plan, including a new dry gas pad in the Marcellus Shale [8][9] - Antero Resources, a key partner, completed approximately $260 million in acquisitions in the Marcellus Shale, enhancing Antero Midstream's operational capacity [9]